Microsoft & Yahoo Finally Get It On
Just read in the San Francisco Chronicle that, after many false starts, Microsoft and Yahoo have finally struck a deal to pool their expertise on search.
Taking on Google was never going to be easy, but the combined power of the second and third largest forces on the search market might actually stand a chance.
I hope it works – the market needs a shake up.
This from the SFC website:
“Under the terms of the 10-year deal, which will require regulatory approval, Microsoft’s Bing search tool will become the exclusive platform on Yahoo’s sites, funneling an enormous volume of queries through the Redmond, Wash., software titan’s increasingly popular algorithm. Yahoo of Sunnyvale will sell the lucrative advertising tied to online search for both companies.
Microsoft will pay Yahoo for the traffic it generates, at a rate of 88 percent of search revenue for the first five years. Within two years of securing approval, Yahoo estimates the agreement will add $500 million to its operating income and save $200 million in capital expenditures.”
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